Ripple Labs’ Q2 2024 report reveals a notable decrease in the company’s XRP holdings, accounting for 44% of the total XRP supply.
This total includes both Ripple’s escrowed XRP and its direct holdings. As of June 30, 2024, Ripple held 4.68 billion XRP, while 39.5 billion XRP remained in escrow, down from 40.1 billion at the end of Q1 2024.
The reduction in XRP holdings, shared on X by Good Morning Crypto (@AbsGMCrypto), reflects Ripple’s ongoing efforts to distribute XRP responsibly while adhering to regulatory and market dynamics.
Ripple releases one billion XRP from escrow monthly, but a significant portion is often returned to escrow, with Ripple strategically managing the supply.
Ripple’s Q2 2024 report highlights several key developments, including a significant decrease in on-chain activity. The total number of transactions on the XRP Ledger (XRPL) fell by approximately 65.6% compared to Q1 2024, with 86.39 million transactions in Q2.
The decline in on-chain activity is attributed to increased transaction costs, which rose by 168.03%, and the general volatility in the crypto market.
Ripple’s Q2 Victories
Despite these challenges, Ripple achieved several regulatory milestones. The report celebrates the first anniversary of Ripple’s landmark legal victory against the U.S. Securities and Exchange Commission (SEC), which classified XRP as not a security. However, Ripple is still awaiting the final court ruling to determine its penalties for institutional XRP sales.
Ripple’s strategic initiatives in Q2 2024 also include the planned launch of tokenized U.S. Treasury bills on the XRPL, aimed at bridging traditional finance and decentralized finance (DeFi). This move is part of Ripple’s broader strategy to integrate real-world assets into its blockchain ecosystem.
Furthermore, Ripple is focusing on expanding its influence in global regulatory landscapes. According to the report, the company has invested $50 million to support pro-crypto candidates in the upcoming U.S. elections. It’s also actively engaging with international regulators to foster crypto-friendly environments.
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Benefits of the Reduced Escrow Amount
As XRP is released from escrow, it becomes available for broader use, potentially increasing liquidity in the market. Greater liquidity can lead to more efficient trading, tighter spreads, and potentially increased use in transactions and financial applications.
Ripple also uses released XRP to fund ecosystem development, partnerships, and technological advancements. These efforts can enhance the utility and adoption of XRP, leading to increased demand and a long-term price increase.
However, some in the community still believe Ripple holds too much XRP, and are advocating for the company to burn the tokens. Ripple CTO David Schwartz recently weighed in on this, explaining why burning the tokens has no advantage.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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